Playtech B2B Live Casino Profits

Live dealer studio income from B2B arm included as a key contributor to Playtech 2021 € 127.6m profits in the latest financial adjustment! (Photo by KaiPilger Pixabay)

Recent adjustments to London Stock Exchange PLC Playtech’s 2021 figures are now publicly available on the company’s investor portal under the results centre. The company published its FY results just yesterday, and the information is already circulating in the financial world and iGaming news wires. After the original reports showed a € 686.7m ‘Reported post-tax profit’, the correct figures are now available with the official figure standing at € 127.6m, which exceeded company forecasts.

B2B Gambling Arms Including Live Gaming Contribute € 554.3m to EBITDA

Under its divisional highlights section, growth in the Playtech live dealer iGaming vertical received a special mention. In particular, the report references 4 new live dealer studios that opened in 2021. This includes the Michigan and New Jersey studios now live and in direct competition with Evolution’s live dealer studios, also operating in the same states.

Also, Playtech opened 2 additional studios in Europe over the past 2 years which have helped increase revenue – the Riga studio being the brand’s largest with 8,500 square meters while Playtech also opened a live studio in Zurich for Swiss casinos under the Swiss Gambling Supervisory Authority (SGSA).
More specifically, the B2B division contributed € 554.3 million in revenue—close to half of the total € 1.2b revenue reported for 2021. This is partly due to a live dealer studio opening up in Michigan while it is too early to tell how successful the brand-new New Jersey studio will be.

Playtech has tech agreements with Parx Interactive to operate in the US states of Michigan, Pennsylvania, and New Jersey across multiple betting and iGaming verticals, while the company also has online gambling licenses approved in Arizona and Mississippi for sports betting tech and partnership agreements with Scientific Games and Novomatic—both key tech providers in the USA. The total income from these Americas B2B deals comes to €101.3 million.

Key Growth Sectors: Thanks to the multiple B2B partnerships in the USA, plus live dealer studio growth as well as deals in the Netherlands (Holland Casino) and Canada (NorthStar), as well as new strategic alignments with brands in Mexico, Columbia, Brazil, Costa Rica, and Panama, the Playtech B2B revenue grew 11% from 2020’s reported €494.8m.

Total Revenue Rise of 12% for 2021—€1,205.4m (€ 1.2 billion)

With € 554.3m revenue coming from the B2B division, other arms of Playtech came up with the remaining € 651.1 creating a total €317.1m adjusted EBITDA. That’s an overall 12% rise in revenue and 25% EBITDA from 2020s figures. Meanwhile, and impressively, adjusted post-tax profit came to €127.6m. which is up 366% on the previous year’s €27.3m.

The Playtech 2021 full-year results report also shows that the B2C division pulled in €663.7m, which brings the combined revenue from B2B and B2C to €1,218 million. As to why this is slightly over the reported €1,205.4m overall revenue is another topic. Revenues from the B2C came via Snaitech and HPYBET with the latter still running at a loss. Other white label solutions with companies such as Sun Bingo took in $62 million revenue up 13% from 2021. However, the most noteworthy gains came from Snaitech’s online vertical, which brought in a total of €229.9m in revenue—a 45% growth year-on-year growth rate, and €182.6m from its retail endeavours.

Playtech CEO Comments on the future: Mor Weizer commented that despite uncertainty in the macro-economic environment Playtech has already kicked started 2022 strongly. Currently, Playtech has over 700 employees in Ukraine, which will affect business at some point down the line. Adding to this, there is the uncertainty of regulatory changes in the world’s largest iGaming and sports betting market—the UK.

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